Saudi Arabia’s Shura council was expected on Wednesday to discuss plans to impose a 2 to 6 percent tax on expat workers’ remittances.
Former Shura council member Husam Al Angari, who submitted the proposal, suggested a 6 percent tax in the first year of living in the kingdom, reported Arabic newspaper Akhbar24.
He said the tax would then drop to 2 percent following five years of the expat’s residency in Saudi Arabia.
Al Angari was quoted as saying that expats’ remittances had almost tripled since 2004, having increased from $15.1 billion(SR57 billion) to over $36 billion (SR135 billion) in 2013. The World Bank claims Saudi Arabia accounts for the second highest volume of remittances after the US, with $37 billion in 2015.
The kingdom first mooted a tax on expat remittances in June. At around the same time, the UAE was also reported to be considering the imposition of such a tax.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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